8 TH GRADE VOCABULARY TERM Ms. pratt
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1 8 TH GRADE VOCABULARY TERM Ms. pratt Term Purposes of Business Profit Profit motive Competition Needs Wants Consumer Goods Services Money that remains after a business has paid for the expenses of running the business. Income > Expenses A person's incentive to work to gain something for himself or herself (that is to make money). Contest between businesses to win customers' business and loyalty Items necessary for existence, such as clothing, food, and shelter. Items that would be nice to have, but are not necessary. A person who uses goods or services. Many times the consumer is also the customer (purchaser). Items businesses sell that can be physically weighed or measured, such as ipods and CDs. Tasks that businesses perform or provide for customers, such as hair cuts and car washes. Types of Businesses Sole proprietorship Partnership Franchise Non-profit organization Corporation A business owned by only one person. A business owned by two or more people. A contract between a parent company and a franchisee to use the name and sell the goods or services of the parent company, such as KFC. A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross. A business considered separate from the owners Page 1
2 Term Multinational corporation of the business by law. The owners are the stockholders. A company that does business and has business facilities in many countries, such as Coca Cola. Functions of Business Accounting Management Marketing Information Technology Operations Human Resources The process of recording and reporting the financial data for a business. The process of leading and directing all or part of an organization The process of creating, promoting, and presenting a product to the consumers. The process of developing, installing, and implementing computer information systems and applications. IT includes the support and maintenance of computer hardware and software. The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders. The activities that deal with the hiring, firing, training and other personnel (employee) issues Key Terms Defined Understand Economics and Economic systems Term Economics Terms Economics Scarcity Capital Resources Making choices and satisfying the wants and needs of consumer. Economics studies how individuals and societies seek to satisfy needs and wants through incentives, choices, and allocation of scarce resources The word "economics" is from the Greek words οκος [oikos], meaning "family, household, estate," and νόμος [nomos], or "custom, law," and hence literally means "household management" or "management of the state." The condition that exists when wants exceed resources available to satisfy wants. Goods produced and used to make other goods and Page 2
3 Term Natural Resources Human Resources Entrepreneurial Resources Types of Economies Command economy Market economy Socialist economy Mixed Economy Traditional Economy services. Gifts of nature that are present without human intervention (ex. land) The knowledge, efforts, and skills people bring to their work, also known as labor. The initiative to improve goods and services or create new ones. Economic system that is run by a central government or authority Characterized by private ownership of the means of production (for example, farms and factories), and supply and demand are responsible for the price and allocation decisions. Individuals decide what, how and for whom goods and services are produced. Characterized by more government ownership and central planning. Government, which relies on tax revenues, is far less likely than private businesses to heed price signals or to feel the discipline imposed by market forces. A combination of a command and market economy. The type of economy where people believe in doing things the same as they have always been done in the past. Supply and Demand Terms Market Supply Demand Law of Demand Includes the customers and locations that a business wants to serve. How much of a good or service a producer is willing and able to produce at different prices. An individual s need or desire for a good or service at a given price. As prices fall for a particular good or service, the Page 3
4 demand for that item will increase and vice-versa. Law of Supply Price As the price of a particular good or service increases, the supply for that item will also be increased and vice-versa. The amount at which a good or service will be sold in a market. Personal Characteristics of Successful Entrepreneurs Personal Characteristic Description persistent creative responsible inquisitive goal-oriented independent self-confident risk-takers Entrepreneurs work until a job is done. They are determined to overcome problems and to pursue their goals in order to make their business successful. Entrepreneurs are constantly looking for new ways to solve problems. An entrepreneur is accountable for his/her actions and does what is required. Entrepreneurs are curious about things that may affect their business. They are not afraid to ask questions or to conduct research in order to solve problems. Entrepreneurs develop a plan of action and must make decisions to help achieve that plan. Entrepreneurs want to make their own decisions. They set their own schedules and are able to work without supervision. Entrepreneurs believe in themselves. Entrepreneurs look for challenging opportunities. They are not afraid to take risks. Skills Needed by Successful Entrepreneurs Skill Description communication skills human relations skills math skills Entrepreneurs need to gather information necessary to organize and run their business. Entrepreneurs must develop writing, speaking and listening skills. Entrepreneurs must get along with others and enjoy meeting and talking to people. Basic arithmetic and knowledge of basic record keeping are needed for the entrepreneur to make purchase decisions, calculate profit and complete financial statements. Page 4
5 problem-solving and decision-making skills technical skills basic business skills Entrepreneurs must make decisions and solve problems every day. Computer skills are essential in almost every business. Entrepreneurs must have a basic understanding of how the economy works and of the fundamental concepts of finance, marketing, and management in order to help ensure the success of their business. 3.0 Key Terms Term Entrepreneurs and Entrepreneurship Entrepreneur Entrepreneurship Business ethics Code of ethics Innovation Mission statement Opportunity An individual who undertakes the risk associated with creating, organizing, and owning a business The process of starting and operating one s own business Applying principles of right and wrong to situations in the workplace A systematic set of rules and procedures used to guide the behavior of an individual, a business, or a culture A new or different product A written description of the purpose of a company and the management s philosophy. An idea that has commercial value Small business The Entrepreneurial Process Sometimes referred to as mom and pop businesses. Small businesses are generally started to create jobs for the owners. Discovery Demographics Concept Development Resourcing The stage in which the entrepreneur generates ideas, recognizes opportunities, and determines the feasibility of ideas, markets, ventures, etc. Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, and income The stage in the entrepreneurial process in which the entrepreneur plans the venture, identifies needed resources using a business plan, and identifies strategies to protect intellectual property The stage in which the entrepreneur identifies and Page 5
6 Term Venture acquires the financial, human, and capital resources needed for the venture startup, etc A business undertaking involving risk Actualization Harvesting The stage in which the entrepreneur operates the ventures and utilizes resources to achieve its goals/objectives The stage in which the entrepreneur decides on a venture s future growth, development, or demise Procedures and Requirements for Starting a Business Business plan Executive summary Start-up resources Capital Trademark Copyright Patent A proposal that describes a new business A brief description of the key points of the business plan Capital and resources needed to start a business Wealth in the form of money or property, used or accumulated in a business by a person, partnership, or corporation Any name, symbol, figure, letter, word, or mark adopted and used by a manufacturer or merchant in order to designate his or her goods The legal right granted to an author, composer, playwright, publisher, or distributor to exclusive publication, production, sale, or distribution of a literary, musical, dramatic, or artistic work The exclusive rights granted by a government to an inventor to manufacture, use, or sell an invention for a certain number of years willing and able to produce at different prices. 3.0 Key Terms Term Entrepreneurs and Entrepreneurship Entrepreneur Entrepreneurship Business ethics An individual who undertakes the risk associated with creating, organizing, and owning a business The process of starting and operating one s own business Applying principles of right and wrong to situations Page 6
7 Term Code of ethics Innovation Mission statement Opportunity in the workplace A systematic set of rules and procedures used to guide the behavior of an individual, a business, or a culture A new or different product A written description of the purpose of a company and the management s philosophy. An idea that has commercial value Small business The Entrepreneurial Process Sometimes referred to as mom and pop businesses. Small businesses are generally started to create jobs for the owners. Discovery Demographics Concept Development Resourcing Venture The stage in which the entrepreneur generates ideas, recognizes opportunities, and determines the feasibility of ideas, markets, ventures, etc. Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, and income The stage in the entrepreneurial process in which the entrepreneur plans the venture, identifies needed resources using a business plan, and identifies strategies to protect intellectual property The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc A business undertaking involving risk Actualization Harvesting The stage in which the entrepreneur operates the ventures and utilizes resources to achieve its goals/objectives The stage in which the entrepreneur decides on a venture s future growth, development, or demise Procedures and Requirements for Starting a Business Business plan Executive summary Start-up resources A proposal that describes a new business A brief description of the key points of the business plan Capital and resources needed to start a business Page 7
8 Term Capital Trademark Copyright Patent Financial Manager Accountant Certified Public Accountant (CPA) Auditor Bank Teller Management Manager Wealth in the form of money or property, used or accumulated in a business by a person, partnership, or corporation Any name, symbol, figure, letter, word, or mark adopted and used by a manufacturer or merchant in order to designate his or her goods The legal right granted to an author, composer, playwright, publisher, or distributor to exclusive publication, production, sale, or distribution of a literary, musical, dramatic, or artistic work The exclusive rights granted by a government to an inventor to manufacture, use, or sell an invention for a certain number of years willing and able to produce at different prices. Top-level professional who may have final responsibility for one of many aspects of a business s financial activity, from accounting and taxation to preparing financial reports and supervising various financial departments of a company. A professional who produces and examines financial records, prepares financial reports and tax returns, and may give budget, tax, or investment advice to the company or customer. Some accountants have their own businesses and work for many clients, and others may work within the financial department of a company. Accountants who meet specific educational requirements and pass a national examination. A professional whose work mainly involves checking on the accuracy of work performed by bookkeepers and accountants, and checking to be sure a company is following all financial laws and regulations. Worker who handles bank deposits and withdrawals, sell traveler s checks and foreign currency, accept loan payments, prepare certified checks or money orders, and may handle other duties. The direct control of a business or enterprise. An employee whose overall job is to make sure that the organization meets its goals and obligations. Page 8
9 Levels of Business Management Top-level (Upper) Management Middle-level Management First-line (Supervisory) Management Functions of Business Managers Planning/Staffing Controlling People who are responsible for setting goals and planning for the future. They have titles like president, vice president, chief executive officer (CEO). Toplevel managers usually consist of a small group of people or even one person. One who carries out the decisions of top-level management. They include plant managers, regional managers, and department heads. They are responsible for planning and controlling an operation. Sometimes referred to as supervisory managers. They may also be called team leaders, coaches, supervisors, office managers, crew leaders, or unit coordinators. A manager who is responsible for directing the day-to-day activities of low-level (all employees below First-line manager status) and operational employees. Sometimes these managers are referred to as operational managers. Setting company goals. Top-level managers must decide what must be done, who will do it, how will the work be grouped, and hiring staff. Keeping the company on track and making sure all goals are met. Leading Organizing Includes giving orders. Good leaders must create a vision for the company, set standards, communicate with employees, provide guidance, and resolve conflict among workers. Deciding how you will get the work done to accomplish the goals. Administrative Services Manager Construction Manager The primary duty is managing support services for various organizations, from large government agencies to small businesses. These workers help organizations work efficiently. The person responsible for the execution of a construction project. Construction managers Page 9
10 must be available often 24 hours a day to deal with delays, bad weather, or emergencies at the jobsite. Education Administrator Farm Operator & Manager Funeral Director Health Service Manager Hotel Manager Human Resources (H.R.) Manager Loan Officer & Counselor Education administrators organize and oversee administrative activities and systems that support and facilitate the smooth running of an education institution. Manage the day-to-day activities of one or more farms, ranches, nurseries, timber tracts, greenhouses, and other agricultural establishments. Their duties and responsibilities vary widely, but focus on the business aspects of running a farm. A professional who prepares for the burial or other disposition of dead human bodies, supervises such burial or disposition, maintains a funeral establishment for such purposes, counsels with survivors. Also called a mortician. Health services managers, also referred to as health care executives or health care administrators, plan, direct, coordinate, and supervise the delivery of health care. A hotel manager is responsible for the day-today management of a hotel and its staff and for planning, organizing and directing all hotel services, including front-of-house (reception, concierge, and reservations), banqueting and housekeeping. A human resources manager is responsible for managing and overseeing the personnel department within a company, organization or agency. This includes posting advertisements or approving advertisements for new employees, screening résumés and applications, setting interview appointments and being involved in the hiring process. Loan officers work for banks and other financial institutions. They help individuals and Page 10
11 businesses obtain funds from these lenders. Public Relations Manager PR Managers evaluate advertising and promotion programs for compatibility with public relations efforts and serve as the eyes and ears of top management. They observe social, economic, and political trends that might ultimately affect the firm, and they make recommendations to enhance the firm s image on the basis of those trends. IT Terminology Information Technology Hardware Technology that enables information to be used to produce products and services. The physical parts of the computer. Software Internet Network Careers in Information Technology Programs on the computer with written commands that tell a computer what tasks to perform. Electronic information networks that carry audio, video, and computer data. A system of computers, peripherals, terminals, and databases connected by communication lines. Computer Engineer Computer Operator Systems Administrator Computer Programmer Software Designer Systems Analyst A profession that involves the understanding and design of computers and computational processes. The person responsible for monitoring and controlling computer systems in a company or organization. A person employed to maintain and operate a computer system or network for a company or other organization. The person who writes codes for computer software. A person who designs, creates, and maintains software. A programmer who designs and manages the development of business applications on the computer. Page 11
12 Multimedia Designer Help Desk Technician Technical Writer Webmaster People who work in communicating a concept or information via a computer using audio, video, text, graphics, animation, etc. Persons responsible primarily for supporting enduser software applications, normally done remotely via telephone. A person who creates technical documentation and user guides for a professional field. The person responsible for maintaining and updating a website. Marketing Terminology Market Marketing Marketing mix Target market Product Place Price Promotion Careers in Marketing The world of commercial activity where goods and services are bought and sold; includes customers and location a business wants to serve. Means by which products or services are developed, priced, distributed, and promoted to customers. Combination of the 4 P's Product, Place, Price, Promotion. A group of individuals or organizations with similar traits who may purchase a particular product. A good or service that can satisfy consumer needs. The location of the business; also includes business activities that involve physical distribution, such as transporting goods, handling the goods, storing the goods, and keeping track of the goods. The amount of money needed to purchase something. The act of informing or reminding consumers about a specific product or brand. Fashion Merchandising Travel and Tourism Marketing Management Involves all activities related to the development, buying, and selling of merchandise associated with apparel production, selection and coordination, fibers and fabrics, computer aided design, product compatibility, product development, quality assessment and control. The industry involved in providing services to support travel, mainly recreational or for leisure purposes. The management of a firm's marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand in a manner that will achieve the Page 12
13 Market Researcher Salesperson Sports and Entertainment Marketing Sales Manager Telemarketer Buyer e-marketing company's objectives A person who accumulates and analyzes data in order to make a particular marketing decision. Market researchers determine what motivates people to buy specific products. A person employed to represent a business and to sell its merchandise. Involves determining the sports and entertainment interests of the consumer and planning a product or service that the spectator will buy. An individual who manages a group of sales representatives. A person who uses the telephone for promoting and selling products. One who makes bulk purchases on behalf of a retailer or wholesaler. e-marketing, also referred to as Internet marketing or online marketing is the marketing of products or services using the Internet. Entrepreneurship Terms Business plan Demographics Entrepreneur Entrepreneurship Free Enterprise System Opportunity Risk Venture A proposal that describes a new business Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, and income An individual who undertakes the risk associated with creating, organizing, and owning a business. The process of starting and operating one s own business. A system where businesses are owned by private individuals and groups, not by the government. Also called a Market Economy. An idea that has commercial value. The chance of damage or loss. A business undertaking involving risk. Forms of Business Organization Sole Proprietorship A business owned and operated by one Page 13
14 Partnership Corporation Franchise Retail Business Non-profit Service business person. A form of business ownership where two or more individuals share assets, liabilities, and profits. A business that is chartered by the state and legally operates apart from its owners. Corporations are owned by stockholder but run by a CEO. The right to sell a company s goods or services in a particular geographic area. A type of business that sells products directly to consumers. An organization that is set up to help those in need but not to make a profit from the business. Work done for others for a profit. Page 14
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